Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock had returns of 14 percent, 14 percent, 19 percent, 2 percent, 16 percent, and -1 percent over the last six years. Required: (a)

A stock had returns of 14 percent, 14 percent, 19 percent, 2 percent, 16 percent, and -1 percent over the last six years.

Required:
(a) What is the arithmetic return for the stock?
(Click to select) 10.67% 11.20% 10.77% 10.87% 12.80%

(b) What is the geometric return for the stock?
(Click to select) 10.51% 12.62% 10.91% 10.41% 10.21%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Describe the characteristics of knowledge management

Answered: 1 week ago

Question

Describe three other types of visual aids.

Answered: 1 week ago